Policy News Journal - 2013-14

UNIVERSAL CREDITS AND SSP LINKING

1 February 2013

The CIPP’s policy team raised a concern with the DWP in respect of the current linking provision for benefits and Statutory Sick Pay and whether this would still apply under Universal Credits. The question we raised was: An employee who commences new employment and becomes sick within the first 12 weeks, the current legislation allows the employer to make the employee exempt from SSP and refer them back to DWP for benefits instead. As this legislation refers now to Employment Support Allowance, which will become obsolete and be incorporated into Universal Credits in the future does that mean this linking legislation will also become obsolete? The 12 week linking rule for contributory ESA will continue to apply after UC has been introduced. However, there will be no equivalent linking rule for UC. This means employers will need to continue to ask if an employee has been entitled to ESA in order to determine SSP entitlement, but there will be nothing to prevent the payment of SSP where an employee has previously been entitled to UC only.” This will mean that when Employment Support Allowance becomes obsolete as a single payment the linking will no longer apply. The DWP will advise their colleagues in HMRC to ensure the appropriate guidance is updated. The answer received from the DWP is:

Link to exemptions for SSP - https://www.gov.uk/sick-leave-pay-employees/eligibility-and- form-ssp1

DWP publish proposed benefit and pension rates 2014 to 2015

9 December 2013

The Department for Work & Pensions has published the proposed benefit and pension rates for 2014 - 2015.

The Proposed benefit and pension rates 2014 to 2015 list confirms the following rates for the 2014-15 tax year:

Statutory Adoption, Maternity, Paternity and Additional Paternity Pay will, as expected, see an increase in the weekly rate from £136.78 to £138.18

Statutory Sick Pay will increase from £86.70 to £87.55.

All increases will come in to affect from 6 April 2014.

Statutory payment rates 2014/2015

19 December 2012

Confirmation of the Statutory Payment rates for 2014/15 has been published.

Statutory Adoption Pay

2014/15 £111.00 £138.18

Earnings threshold

Standard Rate

CIPP Policy News Journal

16/04/2014, Page 495 of 519

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